Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

NOTE 5. DEBT

All debt is incurred by the OP or its consolidated subsidiaries. The following table summarizes our debt (dollars in thousands):

	March 31, 2024					December 31, 2023
	Weighted Average			Amount		Weighted Average		Amount
	Interest Rate (1)	Years (2)		Outstanding (3)		Interest Rate (1)	Years (2)	Outstanding (3)
Credit facilities	4.1%		3.0	$	1,031,266	5.9%	3.1	$	979,313
Senior notes	3.0%		10.2		26,500,864	2.9%	10.1		25,311,647
Term loans and      unsecured other (4)	1.9%		4.1		1,737,132	2.8%	3.7		2,330,520
Secured mortgage	4.4%		4.1		288,405	3.9%	3.4		379,021
Total	3.0%		9.6	$	29,557,667	3.0%	9.3	$	29,000,501

(1)The weighted average interest rates presented represent the effective interest rates (including amortization of debt issuance costs and noncash premiums or discounts) for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rate on certain variable rate debt.

(2)The weighted average years represents the remaining maturity in years on the debt outstanding at period end.

(3)We borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies:

	March 31, 2024								December 31, 2023
	Weighted Average Interest Rate			Amount Outstanding		% of Total			Weighted Average Interest Rate			Amount Outstanding		% of Total
British pound sterling		2.1	%	$	1,292,368		4.4	%		2.1	%	$	1,299,628		4.5	%
Canadian dollar		5.1	%		1,123,875		3.8	%		5.0	%		829,886		2.9	%
Chinese renminbi		3.7	%		452,164		1.5	%		3.7	%		241,820		0.8	%
Euro		2.1	%		9,946,713		33.7	%		2.0	%		10,083,601		34.8	%
Japanese yen		1.0	%		3,106,411		10.5	%		1.0	%		3,085,970		10.6	%
U.S. dollar		4.0	%		13,636,136		46.1	%		4.1	%		13,459,596		46.4	%
Total		3.0	%	$	29,557,667		100.0	%		3.0	%	$	29,000,501		100.0	%

(4)In February 2024, we extinguished a $500.0 million U.S. dollar term loan.

Credit Facilities

The following table summarizes information about our available liquidity at March 31, 2024 (in millions):

Aggregate lender commitments
Credit facilities	$	6,405
Less:
Borrowings outstanding		1,031
Outstanding letters of credit		26
Current availability		5,348
Cash and cash equivalents		501
Total liquidity	$	5,849

We have two global senior credit facilities (the “2022 Global Facility” and "2023 Global Facility"), each with a borrowing capacity of $3.0 billion (subject to currency fluctuations). We may draw on both facilities in British pounds sterling, Canadian dollars, euro, Japanese yen, Mexican pesos and U.S. dollars on a revolving basis. The 2022 Global Facility is scheduled to initially mature in June 2026 and the 2023 Global Facility in June 2027; however, we can extend the maturity date for each facility by six months on two occasions, subject to the payment of extension fees. We also have the ability to increase each credit facility to $4.0 billion, subject to currency fluctuations and obtaining additional lender commitments.

We also have a Japanese yen revolver (the "Yen Credit Facility") with a borrowing capacity of ¥58.5 billion ($386.9 million at March 31, 2024). We have the ability to increase the borrowing capacity of the Yen Credit Facility to ¥75.0 billion ($496.1 million at March 31, 2024), subject to obtaining additional lender commitments. The Yen Credit Facility is initially scheduled to mature in August 2027; however, we may extend the maturity date for one year, subject to the payment of extension fees.

We refer to the 2022 Global Facility, the 2023 Global Facility and the Yen Credit Facility, collectively, as our “Credit Facilities.” Pricing for the Credit Facilities, including the spread over the applicable benchmark and the rates applicable to facility fees and letter of credit fees, varies based on the public debt ratings of the OP.

Our Credit Facilities are utilized to support our cash needs for development and acquisition activities on a short-term basis. The original maturity of our borrowings under the Credit Facilities ranges from overnight to three months.

Commercial Paper Program ("CPP")

In March 2024, we established a CPP, under which we may issue, repay and re-issue short-term unsecured commercial paper notes (“CPNs”) denominated in U.S. dollars. The aggregate principal amount of CPNs outstanding under the CPP at any time cannot exceed $1.0 billion and the net proceeds of the CPNs are expected to be used for general corporate purposes. The maturities of the CPNs generally range from overnight to three months. The CPNs are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis. At any point in time, we are required to maintain available commitments under our Credit Facilities in an amount at least equal to the amount of the CPNs outstanding. At March 31, 2024, we had no issuances or repayments under the CPP.

Senior Notes

The following table summarizes the issuances of senior notes during the three months ended March 31, 2024 (principal in thousands):

	Aggregate Principal				Issuance Date Weighted Average
Issuance Date	Borrowing Currency		USD (1)		Interest Rate	Years	Maturity Dates
January	$	1,250,000	$	1,250,000	5.1%	17.3	March 2034 – 2054
February	CN¥	1,500,000	$	211,024	3.5%	3.0	February 2027
March	C$	550,000	$	405,147	4.7%	5.0	March 2029
Total			$	1,866,171	4.8%	13.0

(1)The exchange rate used to calculate into U.S. dollars was the spot rate at the settlement date.

Long-Term Debt Maturities

Scheduled principal payments due on our debt for the remainder of 2024 and for each year through the period ended December 31, 2028, and thereafter were as follows at March 31, 2024 (in thousands):

	Unsecured
	Credit		Senior			Term Loans			Secured
Maturity	Facilities		Notes			and Other			Mortgage			Total
2024 (1)(2)	$	-	$	-		$	101,480		$	5,352		$	106,832
2025 (1)(3)		-		33,071			221,636			178,913			433,620
2026 (4)		329,744		1,305,718			703,204			3,980			2,342,646
2027 (5)		701,522		1,930,348			47,237			4,156			2,683,263
2028		-		2,553,897			97,891			3,041			2,654,829
Thereafter		-		21,265,036			569,727			86,094			21,920,857
Subtotal		1,031,266		27,088,070			1,741,175			281,536			30,142,047
Unamortized premiums (discounts), net		-		(465,706	)		-			7,752			(457,954	)
Unamortized debt issuance costs, net		-		(121,500	)		(4,043	)		(883	)		(126,426	)
Total	$	1,031,266	$	26,500,864		$	1,737,132		$	288,405		$	29,557,667

(1)We expect to repay the amounts maturing in the next twelve months with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with additional borrowings.

(2)Included in the 2024 maturities was a Chinese term loan ($101.5 million at March 31, 2024) that can be extended until 2026, subject to the prevailing interest rate at the time of extension.

(3)Included in the 2025 maturities was a Canadian term loan ($221.1 million at March 31, 2024) that can be extended until 2027.

(4)Included in the 2026 maturities was the 2022 Global Facility ($329.7 million at March 31, 2024) that can be extended until 2027.

(5)Included in the 2027 maturities were the 2023 Global Facility and Yen Credit Facility ($483.3 million and $218.3 million, respectively at March 31, 2024) that can be extended until 2028.

Financial Debt Covenants

Our senior notes, term loans and Credit Facilities outstanding at March 31, 2024 were subject to certain financial covenants under their related documents. At March 31, 2024, we were in compliance with all of our financial debt covenants.

Guarantee of Finance Subsidiary Debt

We have finance subsidiaries as part of our operations in Europe (Prologis Euro Finance LLC), Japan (Prologis Yen Finance LLC) and the U.K. (Prologis Sterling Finance LLC) in order to mitigate our foreign currency risk by borrowing in the currencies in which we invest. These entities are 100% indirectly owned by the OP and all unsecured debt issued or to be issued by each entity is or will be fully and unconditionally guaranteed by the OP. There are no restrictions or limits on the OP’s ability to obtain funds from its subsidiaries by dividend or loan. In reliance on Rule 13-01 of Regulation S-X, the separate financial statements of Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC are not provided.